You Missed the Boat

Spiraling out of control the real estate market has led to panic among homeowners, especially those that were planning on selling their property at a huge profit.  Unfortunately, real estate is not as easy as it looks.  Many a moron has pitched a sign in their front lawn thinking that anyone could do it.  Then they go inside and start planning what to do with their certain financial windfall.  Only to have that property sit on the market (ultimately missing the first wave of attention from real qualified and capable buyers) for months, eventually getting passed around by eager real estate offices/agents hoping to get lucky.

Rule #1.

Don't do it yourself.  It's stupid.  There's a reason these people spend all day in the trenches, it's so they'll know the real value of property.  Pay the stupid commission.  Nothing makes us quiver more than a FSBO sign.  I typically refuse to deal with them, even as an investor.

Rule #2.

Listen to your agent.  If you find yourself in a bicker with your chosen agent over the initial listing price, you've already lost.  They know what the market will bear.  It's also in their best interest to sell your property for the most they possibly can.  Keep in mind how many times that commission gets split before they actually see any money, some agents end up with as little as 1% of homes they sell.

A smart strategy used with tremendous success by the sharpest agents is pricing your property competitively, but on the low side of the market spectrum.  This is impossible to convince Joe FSBO, even after his property sat for months with nothing but tire-kickers parading through his living room and looking through his closets.  He only knows that the guy down the block got $XXX,XXX.00 for his house, so surely his home can command at least that much.   Joe FSBO needs a smack and a shot of reality liquor.

By pricing the property lower than the expected sale price you instantly get the attention  the serious and ready buyer pool.  These are people who listen to their capable realtors, and have had enough time analyzing the market to know what a great deal is.  Now what will be the outcome?  that's right...... offers!  Not just verbal back and fourths, but actually signed contracts from actual people with actual pre-approved mortgages.  They're looking to buy a property and move into it.  These people have budgets and good credit.  People with budgets and good credit can come up a little higher if they want something badly enough .  These are the people who will buy your house. You even get to filter out the "I'll buy yours when I sell mine" insects.  Like a screen door.

But do you see the difference?  Now you have power.  Nobody says you have to accept said offers.  Has anyone ever heard of a counter offer?  Is it unthinkable that more than one interested party might bring the price of the home back up to where it rightly should have been in the first place?  Nobody is going to begrudge you for waiting a little longer for a possible offer at a higher price.  If they do, fuck 'em.

In times like these it's the real money that comes out of the woodwork.  My first real estate class teacher taught me that.  His name was Peter and he sold houses in Elizabeth, NJ for 40 years.  When the market drops and people are in a panic, you see real money scoop up great pieces of property for unthinkable deals.  Maybe if play our cards smart, one day we can come out of the woodwork.